I found out what the issue was. It was the varnish cache server which was installed and setup by default when you launch a new server on Rackspace. This caching server apparently breaks a lot of Buddypress. Warning to all! If anyone knows how to configure varnish to work properly with BUiddyPress let me know. Thanks.
I am having the same problem. After I enter the group name and description and click submit the page goes to the next step but the form does not render.
I have tried deactivating all plugins, using the twenty fourteen theme, and tried dozens of other fixes people have tried, nothing works. Editing groups works fine, only creating a new group does not work. Once my group is created and I can navigate to the groups list, choose the group I just made and administer it fine.